(a) Purpose: Vacant and dilapidated buildings are inimical to the public health, safety and morals of the City, result in decreased property values and require increased expenditures of public funds. In order to encourage the re-occupancy of vacant buildings and dilapidated buildings within the City, and thereby provide for the elimination of said problem, there is hereby provided a tax credit for the re-occupancy of vacant buildings and dilapidated buildings within the City limits.
(b) Definitions:
(1) "Code Compliant" means compliance with all applicable provisions of the City Code of Fairmont West Virginia, as amended from time to time.
(2) "Demolition" means or refers to Section 110 Demolition of the International Property Maintenance Code which is from time to time adopted by the City by Ordinance.
(3) "Dilapidated Structure or Building" means a structure or building which is the subject of a notice and order issued pursuant to the provisions of Section 110 Demolition of the International Property Maintenance Code which is from time to time adopted by the City by Ordinance, which shall include a Raze or Repair Order issued under said code.
(4) "Notices and Orders" when used in this Section applies to notices and orders issued pursuant to and described in Section 110 Demolition of the International Property Maintenance Code or a Raze or Repair Order issued under said Code, which is from time to time adopted by the City by Ordinance.
(5) "Re-occupancy or re-occupied" with regard to a structure means to convert a dilapidated structure or building or a vacant structure or building into use as an income producing structure, the income from which is subject to the tax imposed by this Article, and which structure is actually physically occupied by at least one or more persons or businesses on a permanent non-transient basis.
(6) "Premises" means a lot, plot or parcel of land including any building or structure thereon.
(8) “Qualifying Structure or Building" means a structure or building that is subject to re-occupancy and is re-occupied ad defined herein.
(10) "Structure or building means" that which is built or constructed or any portion thereof.
(11) "Vacant" when applied to a structure or building is ascribed the same meaning as set forth in the Vacant Building Registration Ordinance which is from time to time adopted by the City; provided however, that no structure and thus no taxpayer will qualify for any credit hereunder until the structure has been properly registered under said Ordinance for a period of at least 180 days immediately preceding the date of application for any such credit.
(12) "Vacant Structure or Building" means a structure or building which is properly registered under the Vacant Building Registration Ordinance which is from time to time adopted by the City; provided however, that no structure and thus no taxpayer will qualify for any credit hereunder until the structure or building has been properly registered under said Ordinance for a period of at least 365 days immediately preceding the date of application for any such credit.
(c) Allowable Credit: There shall be allowed to taxpayers a credit against the business and occupation tax imposed by this Article for the re-occupancy of a vacant structure or building or a dilapidated structure or building. The allowable credit will be measured as a percentage of the annual tax liability generated from the re-occupied structure or building.
(1) Prerequisites: The following prerequisites must be met before a credit will be allowed:
A. The taxpayer must show to the Collector that the structure was the subject of a Notice or Order or registered as vacant pursuant to the City's Vacant Building Registration Ordinance for a period of at least 180 days immediately preceding application for the credit and is therefore a qualifying structure;
B. The taxpayer must show to the Collector that the qualifying structure and the entirety of the premises is code compliant and that the qualifying structure is subject to re-occupancy as evidenced by a current certificate(s) of occupancy issued by the City under the State Building Code and/or the Rental Registration Code, if the Rental Registration Code is applicable; and
C. The taxpayer demonstrates eligibility for the credit by demonstrating that the taxpayer is the owner of the qualifying structure or that the taxpayer has leased the structure pursuant to a written lease from the owner which qualifies as a capital lease under the United States Internal Revenue Code.
D. The taxpayer must apply for the credit on forms provided by the Collector together with all necessary documentation to support the credit and to permit the Collector to make a determination that all prerequisites have been satisfied; The taxpayer must be current in the payment of all municipal fees, charges, and taxes; The taxpayer must demonstrate that all necessary permits and licenses have been issued and are current.
(2) Amount of Credit: The taxpayer will be permitted a credit against the tax imposed by this Article for a period of five (5) years from and after the date the qualifying structure is re-occupied. The credit will be determined as a percentage of the annual tax liability generated from the qualifying structure. The periods and the percentages of the credits shall be as follows:
PERIOD OF B & O TAX CREDIT | PERCENTAGE OF CREDIT |
Year One | 100% |
Year Two | 75% |
Year Three | 50% |
Year Four | 25% |
Year Five | 25% |
(d) Limitations on Credit: No credit authorized hereunder shall apply to any other structure on the premises upon which the qualifying structure is situate and which may be owned or leased by the taxpayer or the income generated therefrom or the tax liability created thereby. The total credits allowed for a single year or cumulatively shall not exceed the tax obligation due on the revenues deemed generated by the qualifying structure for that year or the total tax liability of the taxpayer, whichever is less. The revenues deemed generated by the qualifying structure will be the increase in revenues above the average of the taxable revenues for the three years immediately preceding the year of the re-occupancy of the qualifying structure or for all years income has been generated from the premises, within the City, if less than three years.
Credit in excess of tax liability in one estimate period may be applied to the tax liabilities in other estimate periods in the same taxable year.
It is possible for two or more credits to operate concurrently; however, any credit in excess of the tax liability is not refundable and cannot be carried over into the next tax year.
(e) Forfeiture of Credit: If during any taxable year, property with respect to which a re-occupancy tax credit has been allowed is disposed of or ceases to be occupied in a business of a taxpayer in this City, or if the taxpayer ceases operation of such business before expiration of the period of the credit, then the unused portion of such credit shall be forfeited for the taxable year in which such event occurs and all ensuing taxable years.
(Ord. 1654. Passed 9-8-15.)